12 November 2011 ~ 0 Comments

Rent or Buy in London? – The Ultimate Debate

Maybe you are moving to London Ontario and wondering whether you should rent or buy a property in this attractive city. To rent or to buy is a dilemma that many of us face at some time or another in our lives. Everyone’s situation is different but what general factors should you consider when facing this critical issue?

It has to be said that experts in personal finance do not necessarily agree on the subject of renting vs. buying your home!

            

Those who argue in favor of renting, point out, that we live in uncertain times and that the value of property can go down, leaving you in negative equity. They say that if you can rent more cheaply than you can buy, then you would have more disposable income, which could be invested elsewhere. You will also avoid the expense of repairs and maintenance of your home beyond the minor responsibilities incumbent on you as a tenant.

Those in favor of buying say that if you’re renting an apartment or house in London, Ottawa, Toronto or anywhere else, you are simply throwing away money every month without building up a personal investment of your own. They argue that, over the long-term, property always increases in value and that even if you have to go through a period of negative equity during a local real estate downturn, your home will prove to have been an investment in the end. Many financial advisors point out that buying a home is a way of forcing you to save money for the future.

There is another advantage to home ownership which is over and above purely financial considerations. Owning your home gives you a sense of pride that you can never enjoy with a rental property however nice it is.

When making the decision between renting and buying in London Ontario, always consider the risks and think about your own situation – job security, long-term prospects and other personal factors very carefully. Do your research and seek advice from experts. If you decide to buy, err on the side of caution and try to avoid over-stretching your budget.

 

Image By: Apartments For Rent Mississauga

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